The September 15th tax deadline is looming quickly. Does this deadline apply to you or your business? To ensure you pay your taxes on time and don’t incur any penalties, here’s a look at what’s due.
Estimated Quarterly Income Taxes
If you’re self-employed, your quarterly estimated income tax is due on September 15, 2017. Use Form 1040-ES (Estimated Tax for Individuals) when submitting your payment. Read the form as to where to send your payment based on your state of residency. Corporations also need to file and pay their estimated income tax for the quarter on this date.
Generally, you need to make estimated quarterly payments if you anticipate owing more than $1,000 for the current tax year. However, if you didn’t have any tax liability in tax year 2016, you don’t have to make quarterly payments in 2017. In that case, you can make the whole payment when you file your return in April without incurring a penalty, but you will most likely need to make estimated quarterly payments the following year.
You can make payments online at IRS.gov/payments using a bank transfer or a credit card. The IRS charges a convenience fee for using cards. Otherwise, you can mail in your payment, but it needs to be postmarked by September 15th to be considered on time.
Surprisingly, you can also pay if your tax bill at participating 7-Eleven stores. If you’re in the mood for a slurpee, just roll those tasks together. This is for cash payments up to $1,000, but it takes five to seven days to process so you need to do it early. To use this service, you have to register online first at the IRS’s Official Payments portal.
You can calculate your estimated quarterly tax payments using the worksheet on Form 1040-ES. This uses income, deductions, and credits from your 2016 return but allows you to make adjustments based on your 2017 realities.
S-Corps and Partnerships That Requested Extensions
S-corporations are required to file the informational Form 1120S along with a Schedule K-1 for each shareholder on March 15. However, if you requested an extension, your forms are now due on September 15th, 2017. If you have not submitted payment yet, you should do so when you submit your returns.
Additionally, if your partnership requested an extension, your tax forms are also due on September 15. This due date applies to Schedule K-1 (Form 1065), which is an informational return for partnerships.
C-Corporations With a Fiscal Year Ending on June 30
Based on rules rolled out in 2015, C-corporations must file Form 1120 by the 15th day of the fourth month after the end of their tax year, but if your corporation’s tax year runs from July 1 to June 30, you have to submit your return by the 15th day of the third month following the tax year. This year, that’s September 15, 2017.
If you’re not ready to file by that day, you can submit Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns). This gives you a six-month extension.
Extensions for Taxpayers Affected By Hurricanes
As explained in a previous post, if you live in an area that has been declared a disaster area by FEMA due to Hurricane Harvey or Irma, you get an extension. Most returns or payments due on September 15th are moved to January 31st, 2018. This applies to people who live in affected areas or who volunteer or work with approved groups in the affected areas.
Unfortunately, paying or filing late can result in a variety of penalties or interest. It’s critical to stay on top of the due dates and submit everything in a timely fashion.